Draft Document Issued: European Union Needs Towards Digital Euro

The idea about a European digital currency is slowly picking up steam. Last week, CoinStaker reported on the Association of German Banks (Bankenverband)’s request for the development of a digital euro.

A week later, the European Union has now issued a draft document in which it strongly suggests that all member states should very carefully consider the idea of issuing a united European digital currency.

The draft document is still subject to amendments

Yesterday, Reuters’ report on the draft in question, showcased that the draft is still subject to amendments. The draft is also urging all member states, even those with developing economies and well-known corruption problems to develop a united approach towards cryptocurrencies. That being said, the draft encourages all member states to avoid projects which are deemed as “high-risk”.

This draft could see approval by the end of the year and the consequences could be game-changing. Reuters mentioned that there could be a new law which will potentially escalate to a Europe-wide campaign against cryptocurrencies.

According to the draft by the Finnish EU presidency, the European Central Bank should already be developing its own digital currency:

“The ECB and other EU central banks should already be carefully examining both the risks and opportunities of issuing CBDCs. They should also immediately consider more concrete action to this effect.”

Discussions on the draft will begin later this week and further perspective on its adoption will be discussed next month.

Many experts believe that the European Union is taking these steps towards a digital Euro because of Libra. Ever since Facebook unveiled its plans to launch Libra, France and Germany instantly stood against the idea stating that it would pose substantial risks towards the European and global financial sectors.